QCoal, a privately owned coal miner, has announced the closure of one of its two underground mines at the Cook Colliery near Blackwater in Queensland’s Bowen Basin. The company cited high royalties, elevated production costs, and suppressed coal prices as the primary drivers behind the decision. This closure places approximately 170 jobs at risk. QCoal purchased the Cook Colliery in 2020 and reopened it in March 2022. QCoal is a mining company focused on the exploration, development, and production of high-quality coal resources. It operates several mines in Queensland’s Bowen Basin.
The Cook Colliery produces both high-quality coking and thermal coal, with operations managed by Core Crew. Core Crew will consult with workers regarding potential redundancies and role changes resulting from the mine’s closure. The move follows similar cutbacks in the Queensland coal sector, including Anglo American’s reduction of almost 300 jobs and BHP’s announcement of 750 job cuts at the Grosvenor mine near Moranbah.
QCoal stated that Cook Colliery has been significantly impacted by unsustainable production costs, high taxes and royalties, and persistently low coal prices. Despite contributing $25 million in royalties to the Queensland government since its reopening in March 2022, the company reports that the Cook Colliery has not achieved profitability.
The closure highlights growing concerns within the industry regarding the economic viability of coal mining operations in Queensland, particularly in the face of increasing financial pressures and fluctuating market conditions. The impact on local employment and the broader regional economy remains a key concern.
